Prices fall virtually everywhere. This report week
(Wednesday, February 8 to Wednesday, February 15), the Henry Hub spot
price fell 13¢ from $3.05/MMBtu last Wednesday to $2.92/MMBtu yesterday.
Nationally, weather was milder toward the end of the report period,
except for on the Gulf Coast, where temperatures declined Tuesday and
yesterday.

At the Chicago Citygate, prices decreased 18¢ from last Wednesday to
$2.84/MMBtu yesterday. Prices at PG&E Citygate in Northern
California fell 9¢ to $3.30/MMBtu yesterday. The price at SoCal Citygate
decreased 1¢ to $3.05/MMBtu yesterday.

Northeast prices down as weather moderates. At the
Algonquin Citygate, which serves Boston-area consumers, prices were down
$1.49 from $5.51/MMBtu last Wednesday to $4.02/MMBtu yesterday. Prices
began the week elevated, with cold weather, and peaked on Thursday as a
winter storm moved through the region, knocking out power for over 80,000 customers, mostly in Massachusetts.

Similar to Algonquin, at the Transco Zone 6 trading point for New
York City, prices decreased $1.39 from $4.50/MMBtu last Wednesday to
$3.11/MMBtu yesterday.
Tennessee Zone 4 Marcellus spot prices decreased 15¢ to $2.46/MMBtu
yesterday. Prices at Dominion South in northwest Pennsylvania fell 16¢
to $2.64/MMBtu yesterday.

March Nymex contract down. Following the Henry Hub
price, the price of the March 2017 Nymex contract decreased 20¢ over the
report period, closing at $2.925/MMBtu yesterday. Weather forecasts of warmer-than-normal temperatures
in the coming days may be applying downward pressure on the futures
price. The price of the 12-month strip, which averages March 2017
through February 2018 futures contracts, declined 14¢ to $3.248/MMBtu.

Supply increases slightly. According to data from
PointLogic, the average total supply of natural gas rose by 1% compared
with the previous week, driven by net imports. Dry natural gas
production remained constant week over week, whereas average net imports
from Canada increased by 9% over the report period.

Demand falls. Total U.S. consumption of natural gas
fell by 4% compared with the previous report week, according to data
from PointLogic. Outside of the Northeast, average temperatures for this
report week were generally warmer than last report week.
Week-over-week, power burn declined by 2%, industrial sector consumption
decreased by 2%, and residential and commercial sector consumption
declined by 7%. Natural gas exports to Mexico increased 3%.

U.S. LNG exports. Natural gas pipeline deliveries to
the Sabine Pass liquefaction terminal averaged 2.0 Bcf/d for the report
week, 6% lower than in the previous week. Four vessels (combined
LNG-carrying capacity of 14.0 Bcf) departed Sabine Pass last week....Storage:Unseasonable mild temperatures during the week contribute to smaller than average net withdrawals.
Net withdrawals from storage totaled 114 Bcf, compared with the
five-year (2012–16) average net withdrawal of 156 Bcf and last year's
net withdrawals of 136 Bcf during the same week. Warmer temperatures
throughout the week for most of the Lower 48 states contributed to
decreased heating demand for natural gas and lower withdrawals from
storage. Working gas stocks total 2,445 Bcf, which is 87 Bcf more than
the five-year average and 303 Bcf less than last year at this time....